SMM reported on August 8:
This week, domestic zinc concentrate TCs remained stable, while imported zinc concentrate TCs increased on a WoW basis. Specifically, the weekly average SMM Zn50 domestic TC price remained unchanged at 3,900 yuan/mt (metal content) on a WoW basis, and the SMM Imported Zinc Concentrate Index rose by $3.5/dmt to $82.25/dmt on a WoW basis.
In the spot market, domestic zinc concentrate TCs for August were largely finalized. This week, smelters focused on executing previously signed contracts, with weekly domestic zinc concentrate TCs remaining stable. Regarding imported zinc ore, LME zinc inventory continued to decline to a yearly low, with the overseas market outperforming the domestic market. This week, losses from imported zinc ore continued to widen, prompting some traders to raise their offers for imported zinc ore. However, with smelters maintaining raw material inventory levels of around 29 days and ample inventory, they continued to anticipate an increase in imported TCs, while overall transactions remained sluggish. According to SMM, domestic offers for regular imported zinc ore were recently heard to be around $85/dmt, with September shipment periods. Some containerized zinc ore offers rose above $100/dmt, indicating a sustained upward trend in imported zinc concentrate TCs.
On August 5, key metal producer Nyrstar announced that it had reached agreements with the Australian federal government, the South Australian government, and the Tasmanian government to receive transitional funding support totaling AUD 135 million to maintain operations at its polymetallic smelters in Port Pirie and Hobart and advance reconstruction and key metal development plans. Previously, several Australian smelters, including Glencore's Mount Isa, had sought dialogue and assistance from the government regarding declining production profits and the difficulty of sustaining existing operations. Now, this demand has seen tangible progress. The combined support from governments at various levels, along with continued investment from shareholder Trafigura, will enable Nyrstar to accelerate the assessment of the feasibility of producing germanium and indium in Hobart and antimony and bismuth in Port Pirie while maintaining existing operations, with the first major project being an antimony pilot plant.
This week, SMM zinc concentrate inventory at China's main ports totaled 308,000 mt, a decrease of 25,500 mt from the previous week, indicating a decline in port zinc ore inventory.
